U.S. goes after Newell's assets

Ex-commissioner loses accounts, other resources

A potential five years in prison isn't the only price former Palm Beach County Commissioner Warren Newell will pay if convicted of lining his pockets through secret schemes.

The veteran politician also is facing steep financial consequences for the misdeeds prosecutors say he committed.

During Newell's first court appearance at a Wednesday arraignment, prosecutors said the government is seizing almost all of his assets. That includes two bank accounts, with $60,000 and $80,000 in them, and money Newell received when he cashed out his interest in his engineering firm, SFRN Inc. of West Palm Beach, Assistant U.S. Attorney John Kastrenakes said.

Newell gets to keep his Boynton Beach condo, which he purchased in 2005 for $318,500, his boat and equity in a Lake Worth commercial property estimated at between $50,000 and $75,000.

At the hearing U.S. Magistrate James M. Hopkins asked Newell if this was a full and accurate portrayal of his financial situation.

"Yes, sir," Newell responded.

The 52-year-old was released on $200,000 bond, which is being secured with his condo. Newell also surrendered his passport and is not allowed to travel outside South Florida and the Treasure Coast.

In court, Hopkins read the charges against the 15-year commissioner: conspiracy to commit honest services fraud, which is depriving the public of its right to honest representation, and filing a false personal income tax return.

"He's already indicated his intention to enter a guilty plea and work with the federal authorities," Newell's attorney, Michael Salnick, said in a telephone interview after the hearing. "This was a rough day for him. I wanted to get him through this, and the next step will be the plea conference."

Newell did not answer questions, brushing past reporters outside the federal courthouse before ducking into a black SUV.

In addition to the maximum five years in prison, Newell faces a $250,000 fine and $150,000 in forfeitures, not including the money seized from the bank accounts.

Should he enter a guilty plea, Newell's financial picture could worsen. He'll likely lose his state pension, said Lauren Buzzelli, spokeswoman for the Department of Management Services. Newell had been eligible to receive $2,625 a month once he turned 62, based on 18.87 years of county service.

Prosecutors accuse Newell of using his elected position to accumulate more than $500,000. In one case, they said he pocketed a $366,000 "secret success fee" as part of a South Florida Water Management District land buy in western Palm Beach County.

In another, prosecutors said, he took a payoff from the Palm Beach Yacht Center, which got $14 million in county money. Newell used the money to cover a $48,000 debt he had accumulated from docking his boat at the marina, prosecutors said.

Josh Hafenbrack can be reached at jhafenbrack@sun-sentinel.com or 561-228-5508.